Should the UK replace pay-per-mile with a flat annual tax on electric vehicles?
The UK government confirmed in July 2026 that Electric Vehicle Excise Duty (eVED) will start in April 2028. Fully electric cars will pay 3p per mile on top of the existing £200 annual VED, while plug-in hybrids pay 1.5p per mile. This aims to recover falling fuel duty revenue as EV adoption grows, with drivers estimating annual mileage for upfront payment and reconciling via odometer readings at MOT or renewal.
2 Opinions
We were told to go green, and now we’re getting punished for driving the cars they begged us to buy. Pay-per-mile is just a penalty on anyone who has to drive to work or lives outside London where buses don't exist. Guessing your miles in advance and getting the DVLA to check your dashboard every year is a bureaucratic nightmare
EV owners will already be paying road tax. Pay per mile is designed to cover what they would pay in fuel duty. It covers the actual miles they do, therefore, as with ICE vehicles, the more miles they drive, the more fuel duty they pay. Drivers of ICE vehicles do not get any benefit with fuel duty because they do higher mileage. Why should it be any different for EVs? The bigger issue is the con that fuel duty of any kind is. Drivers used to bolster treasury coffers.